CA AB42

Exempts grants, awards, scholarships, loans, and fellowship benefits for higher education from being counted as income when determining CalWORKs and CalFresh eligibility or benefit amounts, excluding cash payments from friends or relatives

Exempts higher education funds as resources for CalWORKs eligibility calculations for 12 months after receipt

Requires the Department of Social Services to exercise the federal option to align CalFresh income exclusions with those used for TANF cash assistance and certain medical assistance programs

Mandates implementation through an all-county letter or similar instruction by March 1, 2026, until formal regulations are adopted

Provides that the existing continuous General Fund appropriation for CalWORKs county costs does not apply to this bill's implementation